TEXAS GUARANTEED TUITION PLAN

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					TEXAS GUARANTEED TUITION
          PLAN


  ACTUARY’S REPORT ON PROGRAM
           SOUNDNESS

          AUGUST 31, 2009




             December 2009
                  Texas Guaranteed Tuition Plan

              Actuary’s Report on Program Soundness
                         August 31, 2009


                                       Contents


                                                            Page
Section I     Executive Summary                              1

Section II    Summary of Contract Data and Current Assets    4

Section III   Plan Description                               7

Section IV    Actuarial Methods and Assumptions              9

Section V     Soundness of the Plan as of August 31, 2009   12

Section VI    Sensitivity Testing                           17

Section VII   Changes in Surplus                            18

Appendix A    Active Contract Counts                        20

Appendix B    Matriculation Information                     22
                              Section I – Executive Summary


Adequacy of the Fund
As of August 31, 2009, the Plan had an unfunded liability of $605,557,909. The unfunded
liability represents the difference between the sum of the market value of the assets and the
present value of the expected future contract payments and the sum of the present value of the
expected future tuition and required fees, refunds and expenses. The unfunded liability is
$399,237,653 higher than last year’s unfunded liability of $206,320,256. The two primary
sources of change are:

       a) Investment asset performance of (7.77%), 14.57% below the assumed investment
          return of 6.80%. The result was an asset loss of $244.7 million. This estimate may
          vary from the actual asset performance as determined by the investment consultant.
       b) Assumption Changes. Changes to the investment return assumption resulted in a
          $116.7 million increase in the unfunded liability.

The table below summarizes current balances:

       Assets
          Investments                              $ 1,502,072,962
          Future Contract Collections                  141,395,979
       Total Assets                                  1,643,468,941
       Liabilities and Surplus
          Future Contract Benefits and Expenses    $ 2,249,026,850
          Deficit of Assets over Liabilities         (605,557,909)
       Total Liabilities and Surplus (Deficit)       1,643,468,941

The program’s funded ratio is 73.1%.

The assumptions used to measure the adequacy of the Plan, which were approved by the Board,
are stated in Section III. The most important assumptions are:

       The investment yield;
       The rate of increase in tuition/fees;
       Withdrawal rates;
       Future new entrants; and
       Expense.




                                               1
Investment Yield
The investment yield is the expected long-term net earnings rate of return on the assets.

The actuarial valuation of the Plan was determined using the schedule of interest rates found in
Section IV. We also assumed the Plan is exempt from federal income tax. It is important to
highlight the sensitivity of this analysis to this assumption. As pointed out subsequently, a 25-
basis points shortfall in such a goal would place the Plan in a much less favorable position.
Additionally, the nature of this type of program involves payment of benefits at fixed future
points in time, subjecting the Plan to greater than average investment risk due to short-term
fluctuation and in matching investment maturities with expected outlays.


Rate of Increase in Tuition/Fees
Under statutory changes approved in 2003 by the Texas Legislature, the amount of tuition and
required fees paid for each beneficiary who uses a Public Senior College contract to attend a
Public Senior College will be the lesser of: 1) actual tuition and required fees; or 2) the weighted
average tuition and required fees of all Texas public colleges and universities. Under this
formula, Texas colleges and universities must accept this amount as payment in full for a
beneficiary who attends a Public Senior College using plan benefits.

After careful analysis, the Board selected tuition and fee increase assumptions above an expected
rate of inflation. The assumed annual increases were 6.3% for Public Senior Colleges, 5.2% for
Junior Colleges and 7.3% for Private Universities.


Future New Entrants
New contracts in future years would serve: a) to expand the base for spreading fixed expenses; b)
to increase the likelihood that the Plan average tuition cost will not exceed Weighted Average
Tuition (WAT) by a significant amount; and c) to ensure a large enough fund balance to invest
profitably.

In 2003 the Board suspended new enrollment in the Plan. For purpose of the actuarial analysis in
this report, it is assumed that no future contracts will be sold.


Expense
In our analysis we provide an expense provision for records administration charges and for
general expenses. The provision for fiscal year 2010 is $32 per contract that we assumed will
increase 3.5% per year for inflation.




                                                 2
Bias Against the Program by Purchasers and Beneficiaries
Bias is the result of rational decisions by purchasers and beneficiaries. Bias against the Plan is
expected and is intrinsic to the purpose of a prepaid tuition program. A basic reason for
establishing the Texas Guaranteed Tuition Plan is that the purchase of a contract will increase the
commitment of the purchaser to a belief the beneficiary will become qualified to enter college
and that the ownership of a contract will cause the beneficiary to be comfortable with a
commitment to academic achievement.

Bias against the Plan causes the amount the Plan pays to exceed the WAT. WAT is the average
tuition/fees weighted by the number of full-time equivalent students. Bias refers to the degree to
which the Texas Guaranteed Tuition Plan beneficiaries choose to attend the higher priced school
and so cause the Plan to pay out more tuition/fee benefits.

According to the amendments to state law, under statutory changes approved in 2003 by the
Texas Legislature, the amount of tuition and required fees paid for each beneficiary who uses a
Public Senior College contract to attend a Public Senior College will be the lesser of: 1) actual
tuition and required fees; or 2) the weighted average tuition and required fees of all Texas public
colleges and universities. Under this formula, Texas public colleges and universities must accept
this amount as payment in full for a beneficiary who attends a Public Senior College using plan
benefits.

The statutory change removes the bias against the Plan by the Plan beneficiaries choosing to
attend the higher priced school, because the maximum tuition/fees payout is limited by the WAT.

However, these amendments do not apply to community colleges. The assumed bias load was
10.0% for community colleges.

Use of Report
This report is prepared solely to assist the Board of the Texas Guaranteed Tuition Plan in
evaluating the actuarial soundness of the Plan each year. The report is not intended and is not
suitable for any other purpose. Accordingly, Buck Consultants does not intend this report or the
data contained therein to be used as personal financial advice. Other readers of this report should
consult with their own financial advisors regarding the application of this report to their
particular circumstances.




                                                3
             SECTION II – Summary of Contract Data and Current Assets

Contract Data
A contract inventory report as of August 31, 2009 was extracted from Plan data. The contract
inventory report presents the number of credit hours issued net of cancellations by contract type,
number of years of tuition, grade or age of beneficiary and payment option.

The contracts issued in 1996 were for 30 credit hours. The contracts issued after 1996 were for
32 credit hours. The credit inventory (number of hours) as of August 31, 2009 is summarized in
the following table.

                                                       Payment Options
                    Lump      Five-Year    Ten-Year     Extended   Five-Year    Ten-Year       Extended
Plans               Sum       Monthly      Monthly      Monthly    Annually     Annually       Annually

1996 Enrollment
Sr. College         393,999      284,466     362,310       440,884          -              -          213
Jr. College           5,144        6,168       8,620        17,606          -              -            -
Jr. & Sr. College    26,340       31,114      45,263        85,814          -              -           96
Private College       3,757        4,303       3,505         4,418          -              -            -
Total 1996          429,240      326,051     419,698       548,722          -              -          309

1997 Enrollment
Sr. College         376,157      210,346     264,447       250,992          -              -          318
Jr. College           3,154        4,277       4,164         7,488          -              -            -
Jr. & Sr. College    17,786       21,766      28,805        34,946          -              -           92
Private College      17,859        4,799       2,815         3,513          -              -            -
Total 1997          414,956      241,188     300,231       296,939          -              -          410

1998 Enrollment
Sr. College         296,260       88,486     157,125       142,890     79,204      33,598           19,745
Jr. College           2,182        1,130       1,958         2,608        386         288              179
Jr. & Sr. College    11,517        7,319      13,274        18,052      4,137       1,678            1,682
Private College       7,519        2,001         736         1,623      1,953       1,040              277
Total 1998          317,478       98,936     173,093       165,173     85,680      36,604           21,883

1999 Enrollment
Sr. Coll ege        203,789       60,361     124,101       124,379     60,776      24,255           15,582
Jr. College           1,174          765       2,048         1,927        703         128              100
Jr. & Sr. College    10,333        6,176      11,605        14,130      2,889       1,514              574
Private College       5,022          655       1,152         1,412      3,308         640              464
Total 1999          220,318       67,957     138,906       141,848     67,676      26,537           16,720

2000 Enrollment
Sr. College         259,370      106,613     156,675       165,155     76,876      31,632           24,043
Jr. College           2,064        2,150       1,887         2,478        671          96              408
Jr. & Sr. College    11,908       12,016      17,165        17,530      3,187       2,547            1,517
Private College       4,351          840       1,185         1,110      2,917         768              202
Total 2000          277,693      121,619     176,912       186,273     83,651      35,043           26,170




                                                       4
                                                         Payment Options
                    Lump         Five-Year    Ten-Year      Extended   Five-Year    Ten-Year    Extended
Plans               Sum          Monthly      Monthly       Monthly    Annually     Annually    Annually

2001 Enrollment
Sr. College           273,681       126,809     132,287       224,736     114,532      45,895      38,727
Jr. College             3,375         2,813       2,724         8,319         693         713         571
Jr. & Sr. College      21,047        15,911      21,015        42,748       8,188       4,129       6,120
Private College         7,696         1,610       1,005         3,404       2,745       1,521         858
Total 2001            305,799       147,143     157,031       279,207     126,158      52,258      46,276

2002 Enrollment
Sr. College           339,436       128,703     117,214       184,290     141,113      52,558      40,479
Jr. College             5,259         4,507       3,295         7,013         563         760         745
Jr. & Sr. College      19,004        15,814      21,017        31,320      10,286       6,011       5,017
Private College         9,019           856       1,485         3,100       3,181       1,280         805
Total 2002            372,718       149,880     143,011       225,723     155,143      60,609      47,046

2003 Enrollment
Sr. College           814,412       134,223     129,334       286,298     264,381      91,584      91,712
Jr. College            10,897         3,974       2,351         6,697       1,641         591         852
Jr. & Sr. College      41,790        16,165      16,546        41,482      16,211       8,055       9,235
Private College        28,078         3,075       1,193         4,144       9,478       1,143       1,788
Total 2003            895,177       157,437     149,424       338,621     291,711     101,373     103,587

Total Enrollment
Sr. College          2,957,104    1,140,007    1,443,493     1,819,624    736,882     279,522     230,819
Jr. College             33,249       25,784       27,047        54,136      4,657       2,576       2,855
Jr. & Sr. College      159,725      126,281      174,690       286,022     44,898      23,934      24,333
Private College         83,301       18,139       13,076        22,724     23,582       6,392       4,394
Total Enrollment     3,233,379    1,310,211    1,658,306     2,182,506    810,019     312,424     262,401



The number of active contract counts (for all enrollment years combined) by plan type and
projected year of matriculation is included in Appendix A.




                                                      5
Current Assets
The assets are administered by the State Treasury and invested by external managers with whom
the Board contracts. The value of the assets as of August 31, 2009 is $1,502,072,962. Asset totals
shown below do not include securities lending collateral, investment transfers receivable, tuition
contracts receivable or the related obligations for those assets.

Assets held as of August 31, 2009:

               Cash in State Treasury                               $4,275,704
               Investments                                       1,490,638,357
               Interest & Dividends Receivable                      12,007,319
               Furniture and equipment – net of depreciation             9,409
               Less Accounts Payable                                (4,857,827)
               Total Assets                                     $1,502,072,962


It is assumed that this mix will produce a net annual investment return of 6.30% in fiscal year
2010.




                                                6
                             SECTION III – Plan Description
Overview
The Texas Guaranteed Tuition Plan (Plan) is an Internal Revenue Code Section 529 prepaid
tuition plan. It allows the contract holder to lock in the cost of undergraduate college tuition and
required fees, thus providing protection against future tuition inflation.

At matriculation the Plan will pay, based on the number of credit hours purchased, either 1) the
weighted average or actual cost of college tuition and required fees at Texas public colleges and
universities, whichever is less, or 2) the estimated average private tuition and required fees at
Texas private colleges and universities.

The contract holder buys credit hours representing a fixed amount of resident tuition and
required fees. When the beneficiary is ready for college, all or a portion of the tuition and
required fees will be covered at all four- or two-year public colleges and universities in Texas.
The portion of the fees covered will vary based on the type of contract purchased. The contract
can also be used to help pay for tuition at all private colleges in Texas and out-of-state
institutions. Texas public colleges and universities are required by statute to accept the benefit
payments as payment in full for the hours purchased.


Eligibility
At the time of enrollment, the beneficiary must be a Texas resident or his/her parent must be both
the purchaser and a Texas resident.


Contract Types
The fund will pay the maximum number of credit hours listed below for the type of plan
purchased:

    Junior College Plan
     Purchaser can prepay up to 64 credit hours of tuition and required fees at any public
     junior or community college in the state.

    Senior College Plan
     Purchaser can prepay up to 160 credit hours of tuition and required fees at any public
     senior college or university in the state.

    Junior-senior College Plan
     Purchaser can prepay up to 64 credit hours of tuition and required fees at any public,
     community or technical college in the state. In addition, the purchaser can prepay up to
     64 credit hours of tuition and required fees for any public senior college or university in
     the state. Thus, a total of 128 credit hours can be purchased.

    Private College Plan
     Provides an estimated average private tuition and required fees, as determined by the
     board each year. This amount is applied toward any of Texas’ private or independent
     colleges for up to 160 credit hours. If tuition and required fees at the private college
     chosen exceed the estimated average, the beneficiary is responsible for the remaining
     balance. If the college charges are less than the estimated average, the purchaser can

                                                 7
       request a refund of the difference. Otherwise, only the hours necessary to pay the
       student’s tuition and required fee charges will be deducted from his or her plan.


Payment Plans
The Plan offers two types of payment plans: Lump Sum and Installment:

    Lump Sum
      Entire purchase made in one lump sum payment.

    Installment Plan
      Pay every month or once a year.
      Payment period of 5 years, 10 years, or the number of years until the beneficiary’s
        projected high school graduation date.


Refunds
The purchaser may receive a refund on the unused portion of the contract.




                                               8
                SECTION IV – Actuarial Methods and Assumptions

Actuarial Methods
The actuarial method projects the expected future cash flows from contract payments, tuition and
refund benefits and expense. These projected future cash flows are discounted to the present and
compared to the market value of the assets to indicate the soundness of the Plan.

The development of the measurement of soundness has seven stages:

       Develop base line average tuition and required fees from data provided by the Plan;

       Project average tuition and required fees through the expected term of the contracts,
       based on assumptions as to future tuition increases;

       Determine the nominal cost of expected future tuition and required fees, based on the
       contract inventory and assumptions as to mortality, disability, voluntary surrender and
       utilization of benefits;

       Determine the nominal cost of expected future administrative expenses, based on the
       contract inventory and the records administration fee schedule, as well as assumptions as
       to inflation and utilization of benefits;

       Project future contract payments based on the contracts and assumptions as to mortality,
       disability and voluntary surrender;

       Determine the present value of expected future benefits, expenses and contract payments,
       based on the discount rate assumption;

       As the indication of soundness, measure the surplus or deficit, which is the difference
       between the sum of the market value of the assets and the present value of the expected
       future contract payments and the sum of the present values of the expected future tuition
       and required fees, refunds and expenses.


Actuarial Assumptions
Necessary adjustments to reflect new information were made to this year’s assumptions. The
assumptions were approved by the Board. The revisions to the assumptions, if any, are noted
herein.




                                               9
Federal Income Tax
We assume the income of the Plan is exempt from Federal Income Tax.

Tuition/Fee Increase
Assumed annual increases in future tuition and required fees remained unchanged from August
31, 2008 report:

       Public Senior College          Junior College                Private University
               6.3%                        5.2%                             7.3%


Investment Yield
The assumed annual net investment yield is illustrated in the following table:

                                                 Investment
                                       Year         Yield
                                       2009        6.50%
                                       2010        6.30%
                                       2011        6.20%
                                       2012        6.00%
                                       2013        5.80%
                                       2014        5.70%
                                       2015        5.40%
                                       2016        5.00%
                                       2017        4.60%
                                      2018+        4.20%


Expenses
In our analysis we provide an expense provision for records administration charges and for
general expense. The provision for fiscal year 2010 is $32 per contract, which we assume will
increase 3.5% per year for inflation.


Future Participation in the Program
It is assumed that no new contracts will be issued in the future.


Mortality and Disability
Mortality rates for beneficiaries are assumed to follow the 1990 U.S. Life Tables.




                                                 10
Early Voluntary Surrender of Contract
We assumed the following percentages of the public senior college contracts in effect at the
beginning of the year would be surrendered during the year. We use similar estimates for the
other college types, based on empirical evidence:

 Years From                              Five-Year        Ten-Year          Extended
   Purchase         Lump Sum             Payments         Payments          Payments
     1 to 2           2.50%                6.30%           8.80%             13.70%
     2 to 3           1.80%                3.60%           5.30%             6.00%
     3 to 4           0.40%                1.50%           2.30%             3.00%
     4 to 5           0.50%                1.00%           2.00%             3.00%
     5 to 6           0.50%                0.50%           1.30%             2.00%
 After 6 Years        0.80%                1.30%           0.70%              2.30%


Matriculation Percent
We assumed the beneficiary of a contract not voluntarily surrendered matriculates at the date
specified in the contract.


Dropout Rate
We assumed beneficiaries use the number of credits specified in the contract.


Utilization of Credits
We assumed beneficiaries use the credits specified according to the following schedule:

                                 First     Second      Third     Fourth         Fifth     Sixth
     Type of Contract            Year       Year       Year       Year          Year      Year
   Five – Year Contracts         20%        20%        20%        20%           15%        5%
   Four – Year Contracts         25%        24%        23%        20%            8%        0%
   Three – Year Contracts        30%        30%        30%        10%            0%        0%
   Two – Year Contracts          50%        40%        10%         0%            0%        0%
    One- Year Contracts          80%        20%         0%         0%            0%        0%


Frequency of Beneficiary Replacement
We assumed no replacement of beneficiaries.


Bias
We assumed no bias load for universities and a bias load of 10.0% for community colleges.




                                               11
            SECTION V – Soundness of the Plan as of August 31, 2009
As a measure of the soundness of the Plan as of August 31, 2009, we determined the difference
between the value of the assets and the actuarial present value of the future contract payments
and the actuarial present value of future benefits and expenses. This measurement of soundness
is summarized on the following pages.

A projection of the status of the Plan at each future anniversary date through the life of these
contracts is presented on page 15, labeled Present Value of Assets and Liabilities.

The projections of future benefits and expenses and contract payments are presented on page 16,
labeled Expected Cash Flows.

Our measurement of the present value and projection are based on asset and contract information
provided and on the assumptions chosen by the Board.




                                              12
                                 Funded Status

The liabilities of the trust fund exceed the value of assets as of August 31, 2009 (including
the value of future payments by contract purchasers) by $605.56 million. The funded
ratio, assets divided by liabilities, is equal to 73.1%. Asset totals shown below do not
include securities lending collateral, investment transfers receivable or the related
obligations for those assets. The assumptions used to perform the actuarial valuation of
the fund were approved by the Board and are described in Section III.

               Total: $1,643.5                                Total: $2,249.0
                  Million                                        Million



                Future Contract
                   Payments
                 $141.4 Million

                                                             Tuition/Fee
                                                              Payments
            Current Assets                                 $2,249.0 Million
            $1,502.1 Million




                   Assets                                    Liabilities




                                                 13
                                    Cash Flow Projection

        The expected income and disbursements of the trust fund, based on the assumptions used in
        the actuarial valuation, and the current group of contract beneficiaries, are shown below.
        These amounts are cash amounts, not present value amounts.



(thousands)

1,500,000                                                      Assets
                                                               Payments Out of Fund

1,000,000                                                      Payments into Fund + Investment Income



  500,000


        0
              '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31
 -500,000


-1,000,000


-1,500,000


-2,000,000


                                              Fiscal Year End




                                                          14
               Present Value of Assets and Liabilities

                                    Value of Assets and
8/31 of   Present Value of Future Present Value of Future Deficit of Assets to
 Year      Benefit and Expenses         Collections           Liabilities


 2009         2,249,026,850            1,643,468,941         (605,557,909)
 2010         2,173,570,057            1,537,699,546         (635,870,510)
 2011         2,083,317,650            1,411,711,466         (671,606,184)
 2012         1,998,392,837            1,287,119,329         (711,273,508)
 2013         1,889,370,314            1,133,434,701         (755,935,613)
 2014         1,752,890,479              948,003,518         (804,886,961)
 2015         1,598,736,078              742,222,138         (856,513,940)
 2016         1,434,207,827              523,397,703         (910,810,124)
 2017         1,261,327,928              295,319,653         (966,008,275)
 2018         1,085,089,405               65,472,400        (1,019,617,004)
 2019          905,961,910               (163,145,071)      (1,069,106,981)
 2020          725,439,388               (388,769,915)      (1,114,209,303)
 2021          547,218,190               (608,119,667)      (1,155,337,857)
 2022          359,546,972               (832,017,833)      (1,191,564,805)
 2023          211,681,358            (1,016,792,843)       (1,228,474,202)
 2024          102,934,277            (1,165,067,963)       (1,268,002,240)
 2025           33,942,977            (1,278,231,252)       (1,312,174,229)
 2026           6,212,855             (1,356,920,697)       (1,363,133,553)
 2027           1,144,130             (1,418,404,607)       (1,419,548,737)
 2028            637,051              (1,478,444,984)       (1,479,082,036)
 2029            286,194              (1,540,850,193)       (1,541,136,387)
 2030             79,578              (1,605,741,497)       (1,605,821,075)
 2031               0                 (1,673,247,742)       (1,673,247,742)




                                    15
                               Expected Annual Cash Flows

                                                      Contract
        Fiscal Year     Benefit Payments              Payment               Annual
          Ending         and Expenses                 Receipts             Cash Flow


           2010            202,054,251               38,159,024          (163,895,227)
           2011            212,486,766               32,033,809          (180,452,958)
           2012            202,515,179               25,691,032          (176,824,147)
           2013            220,812,710               18,684,803          (202,127,907)
           2014            240,499,878               13,387,038          (227,112,840)
           2015            248,901,055               11,300,018          (237,601,037)
           2016            248,548,364               9,437,474           (239,110,890)
           2017            244,750,512               7,602,332           (237,148,180)
           2018            234,961,765               5,839,597           (229,122,168)
           2019            223,911,664               4,174,591           (219,737,073)
           2020            211,666,858               2,680,706           (208,986,152)
           2021            196,427,433               1,385,623           (195,041,810)
           2022            191,991,486                25,819             (191,965,667)
           2023            145,023,642                   0               (145,023,642)
           2024            102,183,142                   0               (102,183,142)
           2025             62,169,984                   0                (62,169,984)
           2026             24,201,733                   0                (24,201,733)
           2027             4,349,247                    0                 (4,349,247)
           2028              452,543                     0                  (452,543)
           2029              300,708                     0                  (300,708)
           2030              170,111                     0                  (170,111)
           2031               63,160                     0                  (63,160)


Note: The amounts shown above are annual expected amounts for the year corresponding to the
“Fiscal Year Ending” column. They are not cumulative amounts. In addition, Payment Receipts
are frontloaded. Therefore, the Expected Annual Cash Flows project positive cash flows in the
early years and negative in the later years. It is expected that positive cash flows prior to Fiscal
Year Ending 2010 would be invested to cover the negative cash flows in future years.




                                                16
                            SECTION VI – Sensitivity Testing
The Program operates under conditions of risk and uncertainty. For example, while it is assumed
the assets of the fund will earn the annual net rate found in Section IV, we also expect actual
returns to vary from year to year. To accept the reasonableness of the basis for the measurement
of the soundness, it is useful to know how the status of the fund may be affected by the vagaries
of the markets and other factors. We have rerun the valuation under the following alternative
scenarios, and the deficit as of August 31, 2009 under each of these scenarios is presented in the
following table:


                                 Scenarios                                        Deficit
Baseline                                                                        605,557,909

Tuition increases are 25 basis points higher in each future year than
assumed                                                                         636,708,870

The investment return is 25 basis points lower than assumed                     633,699,907

Tuition increases are 25 basis points higher in each future year and the
investment return is 25 basis points lower than assumed                         665,473,634

Tuition increases are 25 basis points lower in each future year than assumed    574,979,663

Tuition increases are 25 basis points lower in each future year and the
investment return is 25 basis points lower than assumed                         602,512,628

The investment return is 50 basis points lower than assumed                     662,481,139

The investment return is 75 basis points lower than assumed                     691,919,535

The investment return is 100 basis points lower than assumed                    722,033,605

Tuition increases are 50 basis points higher in each future year than
assumed                                                                         668,444,166

Tuition increases are 75 basis points higher in each future year than
assumed                                                                         700,775,656

Tuition increases are 100 basis points higher in each future year than
assumed                                                                         733,715,443




                                                17
                           SECTION VII – Changes in Surplus
Adequacy of the Fund
As of August 31, 2009, the Plan had an unfunded liability of $605,557,909. The unfunded
liability represents the difference between the sum of the market value of the assets and the
present value of the expected future contract payments and the sum of the present value of the
expected future tuition and required fees, refunds and expenses. The unfunded liability is
$399,237,653 higher than last year’s unfunded liability of $206,320,256. The two primary
sources of change are:

       a) Investment asset performance of (7.77%), 14.57% below the assumed investment
          return of 6.80%. The result was an asset loss of $244.7 million.
       b) Assumption Changes. Changes to the investment return assumption resulted in a
          $116.7 million increase in the unfunded liability.

Following is a comparison of the assumed and the actual results for the year ended August 31,
2009.


Investment Return
Assets performed worse than expected during the 2009 fiscal year, returning (7.77%) versus the
prior year assumption of 6.80%. The result was an asset loss of $244.7 million. The extent that
investment experience exceeds tuition increases will result in an actuarial gain.


Tuition and Required Fee Increase
The Weighted Average Tuition (WAT) for Senior College increased from $6,943 to $7,362, an
increase of 6.34% compared to the assumed 6.30% increase. The Junior College WAT increased
from $2,051 to $2,172, an increase of 5.90% compared to the assumed 5.20% increase. The
Private College WAT increased from $18,082 to $19,088, an increase of 5.56% compared to the
assumed 7.30% increase. The tuition experience resulted in an actuarial gain of approximately
$6.5 million.


Bias Against the Program by Purchasers and Beneficiaries
The design of the program removed the bias relating to beneficiaries of Texas Guaranteed
Tuition Plan contracts attending relatively higher priced universities. However, there was still an
8.1% bias for community colleges as calculated by comparing the actual tuition and fee payment
for the contract beneficiaries who attend community colleges to the expected payout based on
program assumptions. Therefore the bias was 1.9% less than the 10.0% expected by last year’s
valuation, resulting in an actuarial gain of $65,000.

Expense
The assumption for records administration charges and general expenses remains at $32 per
contract for fiscal year 2009, with an increase of 3.5% per year in each future year for inflation.
But the prior year’s report assumed that expenses would increase to $33.12. This results in an
actuarial gain of $0.6 million.




                                                18
Voluntary Withdrawal and Contract Reductions
There were approximately 917 contracts surrendered during the year. This is less than the 1,127
expected, creating a gain and reducing the present value of expected payments by contract
holders.


Gain/Loss Summary
During the last year, the plan experienced a $268.5 million actuarial loss. The sources of the
(gain)/loss are as follows:

          (Gain) / Loss                                                        (millions)
          Asset Loss (-7.77% return)                                             $244.7
          Tuition Inflation Gain                                                    (6.5)
          Expense                                                                   (0.6)
          Bias                                                                      (0.1)
          Withdrawal and Matriculation                                               31.0
          Total Loss                                                             $268.5


Assumption Change
There were no assumption changes other than the investment return. Changes to the investment
return assumption resulted in a $116.7 million increase in the unfunded liability. Combined with
the actuarial loss of $265.5 million, results in the total unexpected increase in unfunded liability
of $385.2 million.




                                                19
TEXAS GUARANTEED TUITION PLAN
Active Contract Counts for All Enrollment Periods - Appendix A
As of August 31, 2009

  Matriculation                                                        Plan
     Year               1      2       3   4     5       6         7  9  8 10    11    12    13    14    15
      1997             0      2     0     0     0     0     0     0      0    0     0     0     0     0     0
      1998             0      2     0     0     0     0     0     0      0    0     0     0     1     0     0
      1999             2      3     0     0     0     2     0     0      0    0     0     0     0     0     0
      2000            34    378    12    33     9    14     2     5      0    1     0     0     8    16     1
      2001            81    657    26    47    16    24     2    11      0    1     1     1    12    23     0
      2002           123 1,004     37    75    32    35     4    18      0    1     0     2    36    21     0
      2003           207 1,484     46   126    55    38     7    24      1    1     1     3 113      41     0
      2004           238 1,972     63   155    62    67    14    40      2   10     1     0 137      42     0
      2005           368 3,296    100   255    92    71    14    59      1    8     3     4 172      68     0
      2006           475 4,372    168   375 163 106        26    88      1    9     6     3 270      71     0
      2007           575 4,652    186   508 151 143        35    89      5   13    11     5 274      69     0
      2008           698 4,925    225   602 242 184        45    97      5   16     5     6 291      65     1
      2009           577 4,790    193   598 271 250        43 101        2   11     9     3 332      71     0
      2010           648 4,782    198   592 268 218        62    79      5    6     8     3 359      59     0
      2011           622 4,669    146   507 213 210        35    87      1    3     6     4 363      71     0
      2012           615 4,714    190   552 249 178        35 105        7   11    15     1 367      69     0
      2013           608 4,756    164   523 234 198        53    75      3   10     7     5 385      69     0
      2014           593 4,501    169   453 220 187        51    74      1    5     5     1 363      31     1
      2015           425 3,790    119   348 186 134        32    68      2   10     5     0 481       3     0
      2016           394 3,468    118   344 141 121        25    61      8    9     5     1 532       0     0
      2017           358 3,080     84   269 144 117        29    58      0    4     5     0 519       0     0
      2018           346 2,802     98   294 164 107        26    35      1    7     2     0 493       2     0
      2019           322 2,434     75   236 137      72    18    39      1    6     1     0 447       1     0
      2020           236 1,978     74   197 136      63    12    33      2    5     4     1 359       0     0
      2021           264 2,349     89   224 149      70    16    31      2    3    14     0 486       0     0
      2022             2      9     0     2     0     0     0     0      0    0     0     0     1     0     0
      2023             0      6     3     2     0     0     1     0      0    0     0     0     1     0     0
      2024             0      8     0     2     0     0     0     0      0    0     0     0     1     0     0
      2025             0      4     0     1     2     0     0     0      0    0     0     0     0     0     0
      2026             1      4     0     0     0     0     0     0      0    0     0     0     0     1     0
     Total         8,812 70,891 2,583 7,320 3,336 2,609   587 1,277     50  150   114    43 6,803   793     3
   % of Total     8.34% 67.06% 2.44% 6.92% 3.16% 2.47% 0.56% 1.21% 0.05% 0.14% 0.11% 0.04% 6.44% 0.75% 0.00%

Key to Plan Type:
1. Jr/Sr - 2/2              4. Sr - 2 Yr       7. Jr - 1 Yr            10. Pr - 2 Yr            13. Sr - 5 Yr
2. Sr - 4 Yr                5. Sr - 1 Yr       8. Pr - 4 Yr            11. Pr - 1 Yr            14. Sr - 4 Yr +8Hrs
3. Sr - 3 Yr                6. Jr - 2 Yr       9. Pr - 3 Yr            12. Jr/Sr - 2/2 + 4Hrs   15. Sr - 4 Yr + 6Hrs




                                                              20
TEXAS GUARANTEED TUITION PLAN
Active Contract Counts for All Enrollment Periods - Appendix A
As of August 31, 2009

 Matriculation                                           Plan
    Year               16   18     21     23     24       31    34    35      Total      % of Total
     1996               0    0      0     0     0            0     0     0           2       0.00%
     1997               0    0      0     0     0            0     0     0           3       0.00%
     1998               0    0      0     0     0            0     0     0           7       0.01%
     1999               1    0      1     1     2            0     2     0         520       0.49%
     2000               0    0      1     0     0            0     2     0         905       0.86%
     2001               1    1      0     0     1            0     1     0       1,392       1.32%
     2002               1    0      2     0     0            0     2     3       2,155       2.04%
     2003               0    0      1     0     2            0     3     1       2,810       2.66%
     2004               1    0      0     2     1            0     3     5       4,523       4.28%
     2005               2    2      2     2     2            0     7     4       6,154       5.82%
     2006               0    0      4     1     2            0     4    10       6,737       6.37%
     2007               2    2      3     3     0            0     8    12       7,437       7.04%
     2008               1    1      1     1     4            0     5     7       7,271       6.88%
     2009               0    0      2     1     2            0     5    18       7,315       6.92%
     2010               0    1      3     1     3            2     3    10       6,960       6.58%
     2011               0    0      2     2     2            0     7    14       7,135       6.75%
     2012               0    1      6     2     3            2     7     9       7,120       6.74%
     2013               1    0      1     1     1            0    11     6       6,676       6.32%
     2014               0    0      0     0     0            0     5     9       5,617       5.31%
     2015               0    0      0     0     0            0     2     7       5,236       4.95%
     2016               0    0      0     0     0            0     0    12       4,679       4.43%
     2017               0    0      0     0     0            0     0    14       4,391       4.15%
     2018               0    0      1     0     0            0     0     8       3,798       3.59%
     2019               0    0      0     0     0            0     0    10       3,110       2.94%
     2020               0    0      0     0     0            0     0    12       3,709       3.51%
     2021               0    0      0     0     0            0     0     0          14       0.01%
     2022               0    0      0     0     0            0     0     0          13       0.01%
     2023               0    0      0     0     0            0     0     0          11       0.01%
     2024               0    0      0     0     0            0     0     0           7       0.01%
     2025               0    0      0     0     0            0     0     0           6       0.01%
    Total              10    8     30    17    25            4    77 171       105,713
  % of Total       0.01% 0.01% 0.03% 0.02% 0.02%        0.00% 0.07% 0.16%

Key to Plan Type:

16. Sr - 4 Yr + 4Hrs             21. Sr - 2 Yr + 4Hrs         26. Pr - 4 Yr + 4Hrs                    31. Pr - 2 Yr + 4Hrs
17. Sr - 4 Yr + 2Hrs             22. Sr - 2 Yr + 2Hrs         27. Pr - 4 Yr + 2Hrs                    32. Pr - 2 Yr + 2Hrs
18. Sr - 3 Yr + 6Hrs             23. Sr - 1 Yr + 2Hrs         28. Pr - 3 Yr + 6Hrs                    33. Pr - 1 Yr + 2Hrs
19. Sr - 3 Yr + 4Hrs             24. Pr - 4 Yr + 8Hrs         29. Pr - 3 Yr + 4Hrs                    34. Sr Add'l Year
20. Sr - 3 Yr + 2Hrs             25. Pr - 4 Yr + 6Hrs         30. Pr - 3 Yr + 2Hrs                    35. Pr - 5 Yr




                                                              21
Texas Guaranteed Tuition Plan Contracts                                             Appendix B
Matriculation Information – FY 2009 Payments to Community Colleges

                                         Number of   Semester     Tuition and    Average Paid Per
                                         Contracts    Hours        Fees Paid      Semester Hour

Texas Community College
Alvin Community College                          1            2            533             216.93
Amarillo College                                63          440         61,187             139.21
Angelina College                                21          126         13,582             107.66
Austin Community College                       668        4,510        752,911             166.93
Blinn College                                  540        4,935        892,398             180.83
Brazosport College                              20          234         21,216              90.58
Brookhaven College                              89          440         66,013             150.11
Cedar Valley College                            20          131         19,315             147.79
Central Texas College                           38          196         24,731             126.31
Cisco College                                   37          347         55,918             161.17
Clarendon College                                9          113         18,280             161.07
Coastal Bend College                            26          330         50,170             151.87
College of the Mainland                         18           69         11,055             159.96
Collin County Community College                216        1,528        149,014              97.51
Del Mar College                                100          969        140,795             145.25
Eastfield College                               66          513         47,492              92.56
El Centro College                               22          110         11,503             104.17
El Paso Community College                       69          560         69,005             123.13
Frank Phillips College                           1            2            400             216.92
Galveston College                               10           47          5,629             119.62
Grayson County College                          38          454         39,105              86.07
Hill College                                    23          240         24,839             103.54
Houston Community College                      108          548         91,528             167.07
Howard College                                  29          229         33,166             144.97
Kilgore College                                 52          621         82,075             132.16
Lamar State College Orange                      19          147         33,632             228.21
Lamar State College Port Arthur                 16          194         40,016             206.08
Laredo Community College                        37          273         34,014             124.43
Lee College                                     27          275         29,134             106.08
Lone Star College System District              297        1,567        187,294             119.53
McLennan Community College                      81          619         97,547             157.61
Midland College                                 38          200         31,901             159.19
Mountain View College                           23          109         13,982             127.90
Navarro College                                 38          299         43,927             146.89
North Central Texas College                    114          731        127,804             174.89
North Lake College                              80          495         70,014             141.31
Northeast Texas Community College               10           63         10,013             159.53
Northwest Vista College                        136        1,224        170,231             139.12
Odessa College                                  19          211         20,516              97.21
Palo Alto College                               43          403         54,014             133.97
Panola College                                  14          114         13,528             118.42
Paris Junior College                            36          278         42,991             154.70
Ranger College                                   1           16          1,172              73.25
Richland College                               106          698         67,113              96.18
San Antonio College                            178        1,173        181,133             154.45
San Jacinto College Central                     62          175         24,778             141.68
San Jacinto Community College District         133        1,282        143,264             111.76
South Plains College                           132        1,293        210,377             162.76
South Texas College                             61          398         77,649             195.11
Southwest Texas Junior College                  12          101         16,176             159.82




                                          22
Texas Guaranteed Tuition Plan Contracts                                                 Appendix B
Matriculation Information – FY 2009 Payments to Community Colleges

                                           Number of     Semester     Tuition and   Average Paid Per
                                           Contracts      Hours        Fees Paid     Semester Hour

Texas Community College
St. Philips College                                 37          334            41,965         125.76
Tarrant County College Ft. Worth (NW)               62          451            49,362         109.50
Tarrant County College Hurst                       130          665            87,459         131.48
Tarrant County College SE Campus                    78          618            65,604         106.12
Tarrant County College South Campus                 52          345            46,078         133.65
Temple College                                      48          477            71,670         150.40
Texarkana College                                    6           34             3,582         105.74
Texas State Technical College Harlingen             17          178            30,752         172.61
Texas State Technical College Marshall               3           37             7,928         216.97
Texas State Technical College Sweetwater             4           27             3,829         142.76
Texas State Technical College Waco                  65          715           131,272         183.50
Trinity Valley Community College                    27          200            17,675          88.49
Tyler Junior College                                84          883           115,377         130.60
UTB & Texas Southmost College                       43          633           128,768         203.53
Vernon College                                      25          230            35,973         156.21
Victoria College                                    54          461            46,156         100.13
Weatherford College                                 40          386            49,635         128.64
Western Texas College                               38          170            26,307         155.10
Wharton County Junior College                       72          898           121,542         135.39
Total                                            4,882    37,774.24     5,505,013.03          145.73




                                            23
Texas Guaranteed Tuition Plan Contracts                                                 Appendix B
Matriculation Information – FY 2009 Payments to Proprietary Institutions

                                                     Number of Semester Tuition and Average Paid Per
                                                     Contracts  Hours    Fees Paid   Semester Hour

Texas Proprietary Institutions
Academy of Health Care Professions NL                         2        73     15,849          216.97
Academy of Health Care Professions-San Antonio                1        69     14,268          206.79
Alamo Community College Continuing Education                  3        19      3,533          186.07
Allied Health Careers                                         2        75      8,412          111.96
American Intercontinental University - Houston                1         6      1,302          216.97
Art Institute of Austin                                      21       469     92,551          197.17
Art Institute of Dallas                                      22       680    156,228          229.75
Art Institute of Houston                                     26       604    128,516          212.77
ATI Career Training Center North Richland Hills               5       235     40,073          170.79
Austin Community College Continuing Education                 4        29      4,524          156.42
Bradford School of Business                                   4       204     43,767          214.75
Center for Advanced Legal Studies                             1        30      6,509          216.97
Central Texas College Aviation Division                       2        53     11,330          212.84
Central Texas College Distance Learning                      12        24      4,122          169.27
Collin County Special Billing                                 1         1        199          217.01
Commonwealth Institute of Funeral Service                     1        28      6,240          221.16
Computer Career Center                                        1        11        841           76.43
Court Reporting Institute of Dallas                           2        72     15,525          216.97
Court Reporting Institute of Houston                          1        41      8,772          212.12
Dallas County Community College LeCroy Center                 6        17      3,670          216.53
DeVry University Houston                                      2        44      9,406          213.78
DeVry University Irving                                       2        26      5,460          210.00
Eastfield College Continuing Education                        1         3        750          216.95
Everest College Fort Worth                                    1        61     13,203          216.97
Hallmark Institute of Technology                              2        69     15,008          216.97
International Academy of Design and Technology                2        72     15,779          219.15
ITT Technical Institute Arlington                             1        48     10,415          216.97
ITT Technical Institute Austin                                2        32      6,977          216.97
ITT Technical Institute Houston West                          1         8      1,736          216.97
ITT Technical Institute Richardson                            2        40      8,679          216.97
ITT Technical Institute San Antonio                           3       148     26,000          176.05
KD Studio                                                     1        23      5,087          216.97
Le Cordon Bleu-Dallas                                         5       218     47,375          216.97
Lincoln College of Technology                                 5       262     57,463          218.99
Remington College                                             1        12      2,608          216.97
Remington College Fort Worth                                  1        70      6,950           99.85
Sam Houston State University Correspondence Dept.             4         6      1,300          209.61
South Plains College Continuing Education                     2         7        780          113.04
Texas A&M Commerce Correspondence Division                    1         2        400          216.92
Texas A&M University Health Science Center                   19       345     76,357          221.52
Texas A&M University Study Abroad Programs Ofc               10       127     27,555          216.97
Texas Culinary Academy                                       18     1,031    220,228          213.58
Texas Engineering Extension Service                           1        19      4,250          226.05




                                                    24
Texas Guaranteed Tuition Plan Contracts                                                            Appendix B
Matriculation Information – FY 2009 Payments to Proprietary Institutions

                                                      Number of   Semester       Tuition and    Average Paid Per
                                                      Contracts    Hours          Fees Paid      Semester Hour

Texas Proprietary Institutions
Texas State University Office of Correspondence              41          162           34,768             214.65
Texas Tech Outreach & Extended Studies                       46          140           30,335             217.40
Texas Tech Study Abroad                                       3           52           10,765             207.02
Texas Tech University-Rawls College of Business               3           12            2,604             216.97
Universal Technical Institute Houston                         4          145           31,517             216.97
University Extension UT Austin                               94          264           58,302             220.58
University of North Texas Health Science Center               5           53           11,846             224.17
University of Texas at Arlington On Line Courses              3           15            3,316             223.06
University of Texas at Austin Engineering Co-op Ofc           2            4              860             216.95
University of Texas Center for Lifelong Engineering
Ed                                                            1              1            285             216.97
University of Texas Health Science Center at
Houston                                                      16          243           52,715             216.97
University of Texas Health Science San Antonio               27          528          117,130             222.03
UT in DC                                                      3           35            7,528             216.97
UT McCombs School of Business CIBER                           9           35            8,015             229.33
UT Study Abroad Office / International Office                24          260           56,231             216.27
Virginia College @ Austin                                     3           60           10,020             167.00
Wade College                                                  3          157           33,989             216.97
West Texas A&M University Continuing Education                2            6            1,380             216.98
Westwood College of Technology                                1           14            2,929             216.97
Total                                                       495        7,599       1,604,527              211.15




                                                       25
Texas Guaranteed Tuition Plan Contracts                                      Appendix B
Matriculation Information – FY 2009 Payments to Texas Four-Year Public Universities

                                               Number of     Semester     Tuition and    Average Paid Per
                                               Contracts      Hours        Fees Paid      Semester Hour

Texas Four-Year Public University
Angelo State University                                157        3,893        702,030             180.35
Lamar Institute of Technology                           23          424         56,101             132.31
Lamar University                                       131        3,063        601,002             196.20
Midwestern State University                            112        2,729        505,960             185.39
Prairie View A&M University                             35          820        172,975             210.95
Sam Houston State University                           471       12,634      2,382,642             188.59
Stephen F. Austin State University                     384       10,235      2,039,707             199.28
Sul Ross State University Alpine                        27          660        100,684             152.60
Tarleton State University                              217        5,289        939,919             177.70
Texas A&M International University                      41        1,018        150,745             148.13
Texas A&M University College Station                 3,259       83,781     18,032,882             215.24
Texas A&M University Commerce                           81        1,800        298,126             165.62
Texas A&M University Corpus Christi                    214        5,406      1,021,649             188.99
Texas A&M University Galveston                         106        2,920        625,498             214.22
Texas A&M University Kingsville                         80        1,862        324,625             174.39
Texas A&M University Texarkana                           8          139         20,538             147.76
Texas Southern University                               13          304         59,591             196.07
Texas State University San Marcos                    1,387       33,394      7,024,729             210.36
Texas Tech University                                1,753       44,427      9,475,150             213.27
Texas Tech University Health Sciences Center            52        1,078        199,403             184.95
Texas Woman's University                               155        3,519        691,590             196.53
University of Houston                                  621       14,017      2,958,833             211.08
University of Houston Clear Lake                        47          809        155,537             192.31
University of Houston Downtown                          85        1,566        270,892             172.95
University of Houston Victoria                          31          490         88,446             180.51
University of North Texas                            1,121       26,653      5,559,792             208.60
University of Texas at Arlington                       420        9,502      2,026,132             213.22
University of Texas at Austin                        2,922       73,596     16,212,192             220.29
University of Texas at Brownsville                      18          135         22,298             165.31
University of Texas at Dallas                          287        6,835      1,503,288             219.93
University of Texas at El Paso                         136        3,067        609,333             198.68
University of Texas at San Antonio                     921       22,099      4,657,088             210.74
University of Texas at Tyler                           132        2,956        562,359             190.26
University of Texas of the Permian Basin                43          782        134,019             171.39
University of Texas Pan American                       142        3,262        556,312             170.52
West Texas A&M University                              135        3,252        553,988             170.38
Total                                             15,767     388,415.02 81,296,056.08              209.30




                                                26
Texas Guaranteed Tuition Plan Contracts                                                       Appendix B
Matriculation Information – FY 2009 Payments to Texas Private Institutions

                                                   Number of   Semester     Tuition and    Average Paid Per
                                                   Contracts    Hours        Fees Paid      Semester Hour

Texas Private Institutions
Abilene Christian University                              98        2,430        613,508             252.50
Amberton University                                        1            9          1,953             216.97
Austin College                                            67        1,995        468,332             234.80
Baylor College of Dentistry                                5           98         21,202             216.97
Baylor College of Medicine                                 4           68         20,871             306.93
Baylor Law School                                          1            6          1,302             216.97
Baylor University                                        509       13,926      3,353,522             240.80
Concordia University Austin                               19          556        111,544             200.78
Criswell College                                           3           60         13,110             216.97
Dallas Baptist University                                 36          984        204,554             207.85
Dallas Christian College                                   1           37          8,028             216.97
Dallas Theological Seminary                                2            8          1,736             216.97
East Texas Baptist University                             18          458         95,156             207.76
Hardin-Simmons University                                 53        1,318        276,238             209.56
Houston Baptist University                                31          808        172,236             213.16
Howard Payne University                                   27          752        162,709             216.37
Huston-Tillotson University                                1            6          1,302             216.97
Jacksonville College                                       1            6          1,410             216.99
Jarvis Christian College                                   1           13          2,821             216.97
Le Tourneau University                                    15          349         67,576             193.62
Lon Morris College                                         3           65         10,208             157.78
Lubbock Christian University                              33          920        205,953             223.92
McMurry University                                        15          372         76,366             205.26
Northwood University Texas                                 5          114         24,735             216.97
Our Lady of the Lake University                            7          142         22,940             161.55
Rice University                                           74        2,280        543,077             238.19
Schreiner University                                      26          703        143,913             204.79
South Texas College of Law                                11          173         49,023             283.37
Southern Methodist University                            154        4,373      1,068,647             244.39
Southern Methodist University Continuing Studies           1            5          1,009             216.98
Southwestern Assemblies of God University                  3           75         14,586             194.48
Southwestern Baptist Theological Seminary                  3           59         12,126             205.41
Southwestern University                                  102        3,237        812,597             251.00
St. Edwards University                                   157        4,377        989,601             226.08
St. Mary's University                                     48        1,371        328,229             239.39
Texas Chiropractic College                                 2           62         13,443             216.97
Texas Christian University                               312        8,789      2,109,000             239.97
Texas Lutheran University                                 51        1,345        283,496             210.78
Texas Wesleyan School of Law                               5           66         20,243             308.34
Texas Wesleyan University                                 19          492        121,472             246.93




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Texas Guaranteed Tuition Plan Contracts                                                           Appendix B
Matriculation Information – FY 2009 Payments to Texas Private Institutions

                                                     Number of     Semester     Tuition and    Average Paid Per
                                                     Contracts      Hours        Fees Paid      Semester Hour

Texas Private Institutions
Trinity University                                           130        3,730        860,153             230.59
University of Dallas                                          29          753        185,311             245.97
University of Mary Hardin-Baylor                              77        1,998        441,568             221.03
University of St. Thomas                                      24          729        147,771             202.70
University of Texas Medical Branch at Galveston                9          328         71,946             219.17
University of Texas Southwestern Medical Center at
Dallas                                                        13          256         55,488             216.97
University of the Incarnate Word                              64        1,686        360,976             214.13
Wayland Baptist University                                    17          308         54,794             177.75
Total                                                      2,287    62,694.42 14,627,779.54              233.32




                                                      28
Texas Guaranteed Tuition Plan Contracts                                                                                                        Appendix B
Matriculation Information

                                                                               Number of           Semester              Tuition and       Average Paid Per
                                                                               Contracts            Hours                 Fees Paid         Semester Hour

Matriculation Information: Executive Summary

Texas Universities
Texas Community Colleges                                                               4,882               37,774             5,505,013              145.73
Texas Proprietary Institutions                                                           495                7,599             1,604,527              211.15
Texas Four-Year Public Universities                                                   15,767              388,415            81,296,056              209.30
Texas Private Institutions                                                             2,287               62,694            14,627,780              233.32
Total Texas Institutions                                                              23,431              496,483           103,033,375              207.53

Out-Of-State Institutions
Out-of-State Community Colleges                                                          164                 1,700               314,662             185.09
Out-of-State Proprietary Institutions                                                     16                   629               126,178             200.66
Out-of-State Universities                                                              1,833                46,088            10,217,884             221.70
Out-of-State Private Universities                                                      1,226                35,424             8,542,034             241.13
Total Out-Of-State Institutions                                                        3,239                83,842            19,200,757             229.01


Grand Total*                                                                          26,670              580,324            122,234,133             210.63

  * There are a total of 24,720 contracts in matriculation status on August 31, 2009. This is different than the total seen in the chart above due
    to 1,950 students attending multiple schools in the same semester.


                                                                  Total Enrollment

                                                                                      Texas Community Colleges

                                                12.14%                                Texas Proprietary Institutions
                                                                    18.31%
                                        8.58%                            1.86%        Texas Four-Year Universities
                                                                                      Texas Private Universities

                                                                                      Total Out-Of-State Institutions
                                                         59.12%




                                                         Total Tuition and Fee Payments

                                                                                       Texas Community Colleges

                                                              4.50%                    Texas Proprietary Institutions
                                                15.71%
                                                                  1.31%                Texas Four-Year Universities
                                       11.97%
                                                                                       Texas Private Universities

                                                                      66.51%           Total Out-Of-State Institutions




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